Binance warns of a major asset conversion

The exchange swapped 750 million USDT of the TRC-20 standard for ERC-20 stablecoins

12.06.2023 - 14:40

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What’s new? On June 12, representatives of Binance urged not to panic at large movements of Tether (USDT) stablecoins on the exchange’s wallets. Thus, at 12:00 UTC, the platform converted 750 million USDT of the TRC-20 standard on the TRON network to ERC-20 stablecoins based on the Ethereum blockchain. The swap was made with the participation of the Tether team. The purpose of the conversion is to ensure the liquidity of stablecoins across all networks for exchange users.

After 12pm UTC today, #Binance will be swapping 750M USDT-TRX for USDT-ETH directly with the Tether team to ensure stablecoin liquidity across all chains for our users. If you see any significant movements of USDT from our wallets today, that's why. Funds are SAFU. — Binance (@binance) June 12, 2023

Tether is the largest issuer of stablecoins in the crypto market. Centralized USDT, which is pegged to the US dollar, ranks third in the overall cryptocurrency ranking with a capitalization of $83,28 billion.

What is going on with Binance? On June 5, the Securities and Exchange Commission (SEC) sued Binance.com, its US arm Binance.US, and personally against the companies’ founder, Changpeng Zhao.

The next day, the SEC demanded that the assets of Binance.US customers be frozen to ensure their protection and eventual recovery. The regulator also provided data from the platform’s financial report, which showed it earned $410 million since it opened in 2019.

Following the regulator’s lawsuit, Binance.US representatives announced the delisting of ten assets and the termination of the over-the-counter trading. On June 9, a decision was made to suspend US dollar deposits and close fiat withdrawals on June 13, 2023.

For more details on the aftermath of the SEC’s attack on Binance, Coinbase, and altcoins read GetBlock Magazine’s special feature.

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